SD1013 SD Rebate Agreements

India SAP CoE, Slide 1

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Rebate Agreements
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Rebates?

A rebate is a special discount which is paid retroactively to a customer.

This discount is based on the customer's sales volume over a specified

time period.

You define the details of the rebate in a rebate agreement. In the

agreement you specify i) who receives the rebate payment; ii) on what
criteria the rebate is based (customer, customer and material, etc); iii)
how long the rebate agreement is valid

India SAP CoE, Slide 3

Rebate Agreements
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Purpose

Immense competition lead business to devise

various ways of incentive offers to their
customers

At times it is necessary for business to reward

their customers based on their performance
( quantity or value) for a specific period

Hence an agreement with details like, who

receives, how much to receive, criteria to
receive, when to receive are made & executed

India SAP CoE, Slide 5

Use

An agreement between the business and a

customer which becomes active only when the
customer purchases the required sales volume.

Used primarily as incentives or supplements to

increase/sustain product sales.

Aids in attracting new customers or in keeping the

existing customers happy.

India SAP CoE, Slide 6

Challenges

Correct tracking of the validity period of the

agreement

Settling the credit amounts and reflecting the

same in accounting

Incorporating past sales figures into the

settlement if they fall in the validity period

India SAP CoE, Slide 7

Rebate Agreements
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Rebate Agreements in SAP

A Rebate is an agreement between the business and a customer.
This agreement takes the form of a discount based on the sales
volume for the customer over a specific period of time.
The rebate is only relevant if the customer purchases the
required sales volume in that specified period.
However SAP allows other options too for setting the agreement
conditions.

India SAP CoE, Slide 9

Rebate Agreements in SAP

(Continued)

The rebate agreement has separate condition records for

each product the customer buys.

These condition records specify the rebate amount or

percentage due to the customer for each product.

One can also specify a pricing scale so that the customer

can earn a better rebate by ordering more products.

India SAP CoE, Slide 10

Rebate Agreement Types

Every Rebate is associated with a type called the Rebate
Agreement Type.
The Rebate agreement type determines which data the
system is to automatically propose for the rebate
agreement.
The condition type from the pricing procedure, is to be
attached to a condition type group, which will in turn be
attached to a agreement type.

India SAP CoE, Slide 11

Rebate Agreement Types

(Continued)

You may define rebates on as many levels as you require, just as for
any other pricing condition.
The standard system provides the following rebate agreement types:
1. Material rebate
2. Customer rebate
3. Customer hierarchy rebate
4. Material group rebate
5. Independent of sales volume

India SAP CoE, Slide 12

Settlement Material
You may have a rebate that does not refer to a particular
material, but rather to a group of materials or to a customer. In
this case, you must refer to a settlement material in order to
provide information at the material level
Maintain the rebate material in the material master in the Sales
and Accounting views
When creating a credit memo, the settlement material is the
source for important material master data, for example, account
determination

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Relationship to Pricing
Rebates differ from other kinds of discounts in that they are
based on sales volume over time and are paid retroactively.
However, the system processes rebates in much the same way
as other kinds of pricing elements.
Rebate data is saved in condition records.
Controlling for rebate processing is carried out via condition
types, pricing procedures and access sequences.
This control data is defined in Customizing for Sales and
Distribution.

India SAP CoE, Slide 14

Prerequisites for Rebate

Processing

In order for rebates to function, rebate processing must be

activated for:
1. The sales organization.
2. The payer master
3. The billing document type

For performance reasons, you should deactivate rebate

processing if it is not necessary.

India SAP CoE, Slide 15

Creation of Rebate Agreements

The rebate agreement is created with reference to a rebate agreement

type. The features of each rebate agreement type are set in Customizing.

Condition records are linked to the rebate agreement specifying the

rebate rate and the accrual rate.

With the rebate agreement, you can specify:

1. The condition types used with this rebate agreement type
2. A validity period proposal
3. Which status is required before an agreement can be processed for
payment
4. Which rebate agreement types are defined in Customizing for Sales
and Distribution.

India SAP CoE, Slide 16

Rebate
Processing
Organization
of Information Structures

Rebate processing begins by creating a rebate-relevant

billing document.

The valid rebates are determined by the pricing procedure

using the rebate basis subtotal.

Each rebate condition type has an assigned access

sequence.

The system uses the access sequence to search for the

valid rebate condition records. If valid condition records
are found, the accrual rate is read.

Requirement 24 in the pricing procedure enforces that the

rebate conditions are used only in billing documents.

India SAP CoE, Slide 17

Rebate
Processing
Organization
of
Information
Structures
(Continued)

Requirement 25 in the pricing procedure enforces that the

rebate conditions are used only in rebate-relevant billing
documents.

The rebate accrual amount is calculated using the rebate

basis.

The system posts an accrual to financial accounting as soon

as the rebate-relevant billing document is released to
accounting.

At the same time, the system updates the rebate basis and
the accrual amount in the rebate agreement sales volume
screen.

India SAP CoE, Slide 18

Creating Rebate Settlements

The system uses the accumulated amounts in the

rebate agreement to create a rebate settlement.

The system generates a rebate credit memo request

for the
rebate payment amount specified.

There are 3 statuses available for rebate agreements

1. Status A refers to an open rebate agreement.
2. Status B means the rebate is released for
settlement.
3. Status C means you have actually executed the
settlement. The System creates a credit memo
request for the accrual amount.

India SAP CoE, Slide 19

Creating Rebate Settlements (Continued)

You can display the sales volume and drill-down in the

rebate agreement.

You can carry out a final settlement for the rebate

agreement either:
a. Manually
b. Automatically
c. In the background (batch programs: RV15C001 and
RV15C002)

Accruals are reversed as soon as the rebate agreement

is settled by credit memo.

India SAP CoE, Slide 20

Partial Rebate Settlement

Retroactive rebate agreements allow you to take into account
billing documents created before the rebate agreement is
created.
The rebate basis for the billing documents created previously
is accumulated and recorded in the rebate agreement
The accrual amount is not automatically updated for
previously created billing documents. This amount must be
entered manually
Rebate-relevant billing documents created after the rebate
agreement is created update both the rebate basis and accrual
fields automatically

India SAP CoE, Slide 21

Creating Rebate Settlements

Partial rebate settlements can be limited for each rebate
agreement type as follows:
1. up to the accumulated accrual amount
2. up to the calculated payment amount for the current
date
3. unlimited
Accruals are canceled automatically when a credit memo
is created, provided that the rebate agreement type is set
accordingly in Customizing

India SAP CoE, Slide 22

Rebate Agreements
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Activating Rebate Processing in

Billing Type & Sales Org.
Display IMG
Sales & Distribution
Billing Rebate
Processing
Activate Rebate
Processing

1. Go to Sales & Distribution

2. Select Activate
Rebate Processing

3. Double click on one

of the two options
India SAP CoE, Slide 24

Activating Rebate Processing in

Billing Type & Sales Org

Use the checkbox to activate/deactivate rebate processing.

India SAP CoE, Slide 25

Activating Rebate Processing in

Payer Master Record
Use Transaction XD02 to check/change Rebate Activation in payer master.
Check in Sales Area Data Billing Documents Tab

India SAP CoE, Slide 26

Rebate Agreement Types

Identifies the
type of rebate
agreement
(for example,
whether the
rebate is
based on a
customer or
on a material).
Display IMG
Sales & Distribution
Billing Rebate
Processing
Rebate Agreements

1. Go to Sales & Distribution

2. Select Define Rebate
Agreement types

3. Double click on Define

Rebate Agreement types

India SAP CoE, Slide 27

Rebate Agreement Types

(Continued)

Click on this button to

create new rebate
agreement types

India SAP CoE, Slide 28

Assigning Condition Type to a

Group
1. Go to Sales & Distribution

Display IMG
Sales & Distribution
Billing Rebate
Processing Rebate
Agreements Condition
Type Groups Assign
Condition types/tables to
Condition Type Groups

2. Click on Assign Condition

types/tables to Condition Type Groups

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Assigning Condition Type to a

Group (Continued)
In this IMG activity,
you assign
condition types and
condition tables for
rebate processing
and condition type
groups.
Specifies a grouping of
condition types and condition
tables for use during rebate
processing.

India SAP CoE, Slide 30

Assigning Condition Type Group

to Agreement Type
1. Go to Sales & Distribution

Display IMG
Sales & Distribution
Billing Rebate
Processing Rebate
Agreements Condition
Type Groups Assign
Condition Type Groups to
Rebate Agreement Types

2. Click on Assign Condition Type

Groups to Rebate Agreement Types

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Assigning Condition Type Group

to Agreement Type (Continued)

India SAP CoE, Slide 32

Creating a Rebate Agreement

Use Transaction VBO1 to create a Rebate Agreement. On executing it, it would
ask for a Agreement Type. Enter the Agreement type and press enter.

Place the cursor in the box and

press F4 to the possible entries for
the rebate agreement type.

India SAP CoE, Slide 33

Creating a Rebate Agreement

(Continued)

1. Select 0003 (Customer

Rebate) and press enter

2. Window pops up for

entering the sales area

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Creating a Rebate Agreement

(Continued)

3. Click on Conditions button

1. Enter Rebate Recipient

2. Set status to A

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Creating a Rebate Agreement

(Continued)

1. Enter Customer

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2. Enter Amount in %

3. Enter Accrual amount

Creating a Rebate Agreement

(Continued)

Click on Goto and select

Material for Settlement

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Creating a Rebate Agreement

(Continued)

2. Click on Save

1. Enter Material

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Creating a Rebate Agreement

(Continued)

Agreement is saved

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Sales Order Creation

Use Transaction VA01 to create a sales order.

1. Select order type

2. Enter Sales Area

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Sales Order Creation (Continued)

3. Click on Save. The sales
order number is generated.
1. Enter Sold-to, Shipto and PO Number

2. Enter Material
and Quantity

India SAP CoE, Slide 41

Delivery Creation
Use
Transaction
VL01n to
create a
delivery,
create
transfer
order if
necessary
or manually
pick the
items and
post goods
issue.

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Billing Document Creation

Use
Transaction
VF01 to
create a
billing
document

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Display Rebate Agreement

Select Sales Volume

India SAP CoE, Slide 44

Display Rebate Agreement

Click on Sales Volume and the

Verification Level. The details of the
amount of discount given to the
customer for a material is seen

India SAP CoE, Slide 45

Settling the Agreement

Use VBO2 and type in the agreement Number. Change the Agreement
Status to B and click on Final Settlements->Automatic. On doing so, a
Credit Memo Request gets created.

Status is set to C. Save it.

A credit Memo Request Number is generated.

Go to VA02 and type in the Credit Memo Request number generated.

Remove the Billing Block and Save it.

Use VA02 to go to Sales Document and Click on Billing. On Saving it,

the Credit Memo Request is now Billed

Go to VBO3 and see the Agreement Status. It would have been set to D,
which means that final settlement of agreement has been carried out.

India SAP CoE, Slide 46

Rebate Agreements
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Exercise
Create rebate agreement ensuring that billing documents created
before the agreement but falling in the validity period are accounted for
Create a sales document, deliver it and create the billing document
Check for sales volume and verification level in the agreement
Create settlements (Partial and Full)

India SAP CoE, Slide 48

Rebate Agreements
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Transaction Codes
VB(2

Change View "Rebate Agreement Types": Overview

VB(5

Assign Condition Type Groups to Rebate Agreement Types

OVB0

Activate rebate processing for billing document types

OVB1

Activate rebate processing for sales organizations

XD02

Change/check rebate activation for payer master

VBO1/O2/O3

Create/Change/Display Rebate Agreement

VA01/02/03

Create/Change/Display Sales Order: Initial Screen

VL01n/02n/03n

Create/Change/Display Outbound Delivery

VF01/02/03

Create/Change/Display Billing Document

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